The Board of the Bank of Lithuania has approved the Regulations on the Sale of the Bank of Lithuania’s Digital Collector Coins LBCOIN and established that it will be issued on 23 July 2020. The LBCOIN e-shop, where buyers will be able to create their accounts, is expected to run from 9 July.
LBCOIN is the world’s first blockchain-based digital collector coin consisting of a set of six randomly selected digital tokens that can be exchanged into a physical collector coin. The Bank of Lithuania will issue 4,000 LBCOINs, i.e. 24,000 digital tokens and 4,000 physical collector coins.
The coin is dedicated to the Act of Independence of Lithuania and its 20 signatories. Each token features one of the signatories and is divided into six categories (priests, presidents, diplomats, industrialists, academics, municipal servants) with 4,000 tokens allotted to each group.
When purchasing the digital coin, collectors will get six randomly selected digital tokens and, only having collected a token from each of the six categories, will be able to redeem a physical silver coin which will otherwise not be available for sale.
Six digital tokens of different categories will be exchanged into one collector coin within the first 24 months from the date of the collector coin is issued into circulation, while six digital tokens of any category will be exchanged into one collector coin within the period from the 25th to the 30th month.
In 30 months, digital tokens will no longer be exchanged and the Bank of Lithuania’s e-shop will be closed.
In order to ensure its availability, one person at a time will only be able to purchase one LBCOIN consisting of a set of six randomly selected digital tokens within the period from the first to the sixth day of its sale. Later, the number of purchases will not be limited. LBCOIN digital tokens can only be purchased by l natural persons, including minors aged 14–18 (with consent of their parents or guardians).
The approved Regulations establish the registration and KYC procedures as well as the procedure for checking whether the buyer is not on the Specially Designated Nationals List and processing of buyers’ personal data. The Regulations can be found here (the English version will soon be available).
Digital tokens are not legal tender and can only be exchanged into a physical collector coin, swapped with other collectors, sent as gift or transferred to a public NEM wallet. The physical silver coins of unconventional denomination – €19.18 – will have the legal tender status in Lithuania as any other euro collector coins, however, their use as a means of payment will not be encouraged.
LBCOIN is the world’s first blockchain-based digital collector coin created by the Bank of Lithuania. By implementing this unique idea, the central bank seeks to gain valuable experience and knowledge in the field of digital currencies. The digital coin is also expected to turn a qualitatively new page in the history of Lithuania’s numismatics and to engage more people, especially the youth, in coin collecting.
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Many more interesting quotes in the video below:
